Philippine Metals Begins Drilling on Taurus Project

Philippine Metals Inc. ("Philippine Metals" or the "Company") (TSX
VENTURE:PHI)(FRANKFURT:PM7) is pleased to announce that it has completed a
ground geophysical induced polarization (IP) survey over the
Kambalantong-Malayahay corridor (see news release dated June 7, 2010) on the
Taurus Project. Elliott Geophysics International Pty. Ltd. ("Elliot Geophysics")
based in Cannington, Australia who conducted the ground survey was tasked to
complete further data analysis and 3D modeling. 


Philippine Metals has now received the results from Elliot Geophysics. The
modeling and pseudo sections indicate several anomalous areas of interest
untested in the subsurface and sited within the Kambalantong-Malayahay corridor:


1. The Buen Suerte zone: 

The 3D modeling of the IP geophysics shows a globular 400 m wide (on NW
direction) by 300 m long (on NE direction) chargeability body (greater than 20
mSec), which correlates with an outcropping gossaniferrous-disseminated sulphide
bearing zone traversed by moderately spaced, sub-parallel to ladder shape, from
0.3 m to as wide as 14 m, massive sulphide bearing structures trending 330
degree with steep to moderately gentle east dips. These potentially ore-bearing
structures, as currently disclosed, are open at depth. The Buen Suerte zone is
the location of several historic underground production tunnels mined near
surface for a few tens of meters with the potential ore-shoots left open at
depth.


2. The Malayahay zone: 

The Malayahay zone is represented by a metal factor anomaly of at least 700 m
long by 150 m wide using a metal factor of greater than 150 mSec/ohm-m. Metal
factor anomalies represent high chargeability zones with attendant resistivity
lows. Unlike Buen Suerte, the structural fabric of the greater than 2.0% Cu
bearing cross structures in Malayahay has yet to be determined, thus drill holes
will be inclined both on the 50 degree and 230 degree azimuths as it is expected
that the mineralization will be a combination of west dipping 330 degree trends,
and north dipping 90 degree trends representing both feeders to the massive
sulphides (stockwork stringer zones) and the massive sulphide mineralization
itself. The Malayahay zone is represented on surface by an extensive NNW (330
degrees) trending gossaniferrous body (from L900 extending across L1600 in
Malayahay) that was disclosed by several trenches, test pits, development
tunnels and adits sited, mapped and sampled within the area. Assay and XRF
results of the samples show elevated copper content. 


Drill Progam

A drill program designed to test these anomalies has now been initiated using
Indodrill Philippines Inc. ("Indodrill") out of Clark Airforce Base,
Philippines. Indodrill has now mobilized to the Taurus Project area and has
begun drilling.


Drilling in the identified areas within the Kambalantong-Malayahay corridor will
initially require ten drill holes totaling 1,550 m with a further seven
contingent holes totaling 1,200 m (2,750 m total). 


Two other recently identified work areas, which have been the subject of
extensive mapping and sampling, include the Salvacion Project area located
immediately southeast of Kambalantong-Malayahay, and the Suhi Area where a
historical inventory from two strike and dip persistent veins was quoted to have
a non NI 43-101 compliant inferred resource inventory of 2.02 million tonnes
with a grade of 2% - 3% Cu (Zerda, 1974(1)). 


Two priority drill holes are planned in Salvacion area for 100 m and 80 m
respectively, while for the Suhi Area, an initial high-priority drill hole of
125 m and a contingent drill hole of 130 m are also planned to be drilled. 


Overall the drilling program consists of:



------------------------------------------------------------
Status                   Number of Holes              Meters
------------------------------------------------------------
Priority Drill Holes                  13               1,855
------------------------------------------------------------
Contingent Holes                       8               1,330
------------------------------------------------------------
Total                                 21               3,185
------------------------------------------------------------



Philippine Metals' current exploration activity is initially focusing on one of
several corridors of copper occurrences within the 9,895 hectare Taurus Project.
The Company is still finalizing the logistics of a region-wide airborne
geophysical survey over the entire Taurus Project and anticipates that several
additional targets will be identified for further exploration and drilling.


The Taurus Project is located in central Philippines on the island of Leyte. The
project consolidates for the first time a large ophiolitic copper province,
which comprises the eastern portion of Leyte. Philippine Metals is testing this
historically prolific copper area for the first time using modern exploration
techniques. Leyte is the location of one of East Asia's largest copper smelters,
the PASAR copper smelter, located on the west side of the island.


"This is an exciting time for Philippine Metals," stated Feisal Somji, CEO of
Philippine Metals, "as we are now initiating our first drilling program in the
Philippines. The geophysical survey results reveals several chargeability and
total metal factor anomalies, which strongly correlates with both the surface
mapping, trenching and sampling conducted recently by the Company, and the
historical underground workings in the two targeted mining areas. The Company
will now test these anomalies and, if successful, has the capital to expand the
drilling program." 


Malitao Update

The Exploration Permit Application ("EPA") process for the Malitao Project is
still ongoing. The Company has been advised that a formal objection to the EPA
has been filed during the permitting process. Under the provisions of an EPA as
defined in the Philippines Mining Act, any person (including companies) has the
ability to file an objection to an EPA. The filing of an objection is
facilitated under the normal course of an EPA process whereby a person can claim
to have overlapping rights to an area, which is handled through a dispute
mechanism comprising the Panel of Arbitrators of the regional Mines and
Geosciences Bureau (the "Panel"). The basis of the objection has been previously
ruled upon by the Panel in a separate objection last year and at that time the
Panel rejected the objection. Philippine Metals believes that this latest
objection filed on the Malitao EPA is without merit. The Company is confident
that the EPA will be granted in favor of Philippine Metals upon completion of
the review by the Panel. The Company will provide a further update when it is
formally advised of the timing of the Panel's review.


Investor Relations Update

Philippine Metals wishes to announce that on September 15, 2010 it entered into
an investor relations agreement with Marc Andrews of San Francisco, California
(the "Agreement"). 


Mr. Andrews possesses an extensive background in the investment industry, which
includes investor relations and corporate communications consultant positions
for public and private companies in the energy and mining sectors. Mr. Andrews
will leverage his knowledge of and experience with the US investment community
and market to enhance Philippine Metals' investor awareness, share liquidity,
brand and story. 


The Agreement has a term of 12-months with a 30-day termination clause after the
initial six months, pursuant to which Mr. Andrews will provide investor
relations services to the Company including the development of investor
relations strategies relating to advertising programs and investor awareness and
fostering broker and analyst interest in Philippine Metals' activities. As
compensation for his services, Mr. Andrews will receive a retainer fee of
USD$4,000 per month, reimbursement for related expenses and 70,000 options to
purchase common shares in the capital of Philippine Metals pursuant to the terms
of Philippine Metals' stock option plan with an exercise price of CAD$0.45 per
common share.


Background information concerning the Taurus Project set out in this news
release has been summarized from, and is qualified in its entirety by a report
on the Taurus Project dated October 22, 2009 (the "Technical Report"). The
Technical Report was prepared in accordance with NI 43-101 and a copy is
available under the Company's SEDAR profile at www.sedar.com.


(1) Zerda, Rafael R. 1974: Report on the Verification and Geological Appraisal
of the Leyte Base Metal Copper Claims at Barrio Suhi, Tacloban City in
connection with their application for licensing and Listing in the Securities
Exchange Commission. Report for the Director, thru the Chief geologist, Bureau
of Mines, Manila. Internal report submitted to the Director of Mines, Manila.


William Dynes P Geol, is the qualified person, as defined in NI 43-101, whom has
reviewed and verified the scientific and technical disclosures contained in this
press release. 


About Philippine Metals Inc.

Philippine Metals Inc. is focused on the exploration, discovery and development
of highly prospective copper and copper-gold deposits in the Philippines. Based
on the region's geological environment, the company's management team recognizes
the country's potential for hosting large, world-class deposits of copper and
copper-gold.


The Company's initial projects, Taurus, Malitao and Dilong, are examples of
management's ability to source quality, highly prospective targets. The
management team combines strong financial capabilities with world-class
experience in mineral exploration, discovery and mine development.


ON BEHALF OF THE BOARD OF PHILIPPINE METALS INC.

Feisal Somji, Chief Executive Officer

This news release contains forward-looking information including but not limited
to comments regarding the timing and content of upcoming work programs,
geological interpretations and potential mineral recovery. Forward-looking
information includes disclosure regarding possible future events, conditions or
results of operations that is based on assumptions about future economic
conditions and courses of action, and therefore, involves inherent risks and
uncertainties. When used in this news release. The words "estimated", "plan",
"anticipated", "expected", "intend", believe", and similar expressions are
intended to identify forward-looking statements. These statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievement expressed or implied by such
forward-looking statements. For any forward-looking information given,
management has assumed that the analytical results it has received are reliable,
and has applied geological interpretation methodologies which are consistent
with industry standards. Although management has a reasonable basis for the
conclusions drawn, there can be no assurance that forward-looking statements
will prove to be accurate and actual results may differ materially from those
currently anticipated in such statements. Forward-looking statements included in
this news release are made as of the date of this press release and the Company
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise,
except as expressly required by applicable securities legislation.
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